Pension funds in Iceland in rapid growth Skip to content

Pension funds in Iceland in rapid growth

By the end of 2006 pension funds in Iceland had assets worth ISK 1,496 billion (EUR 16.9 billion, USD 22.1 billion), which is a 22.8 percent year-on-year increase according to the Central Bank’s annual review.

Glitnir Bank pointed out that if that sum would be equally distributed among all inhabitants in Iceland, everyone would be entitled to ISK 4.9 million (EUR 55,000, USD 72,000). Fréttabladid reports.

For comparison, Glitnir said each Norwegian is entitled to ISK 3.9 million (EUR 44,000, USD 58,000) from the Norwegian Pension Fund, commonly known as the Oil Fund.

By the end of last year the pension funds had assets worth ISK 1.033 billion (EUR 11.7 billion, USD 15.3 billion) in Iceland, an increase by 17.2 percent from 2005.

The pension funds’ assets abroad were worth ISK 443 billion (EUR 4.9 billion, USD 6.4 billion) by the end of 2006, and had increased by 48 percent since the end of 2005.

The vast growth of foreign assets is partly due to the lowering of the Icelandic currency last year and partly due to the increase in value in foreign stock markets.

Since 2001, the pension funds in Iceland have increased their assets steadily, from ISK 645 billion (EUR 7.3 billion, USD 9.5 billion) in 2001 to ISK 1,496 billion (EUR 16.9 billion, USD 22.1 billion) in 2006.

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